Question: the expected return on jk stock is 1578 percent while...
The expected return on JK stock is 15.78 percent while the expected return on the market is 11.34 percent. The stock's beta is 1.51.
a. What is the risk-free rate of return?
b. What is market risk premium?
Please check the answers and show all work typed out. No excel or grid style please as I am on mobile.